St. Jude Medical net off 4%, issues strong outlook

TessStynes

St. Jude Medical Inc.'s
STJ, -1.27%
fourth-quarter earnings fell 4% amid an increase in restructuring charges and other items, while the medical-device maker's revenue also declined in a soft market for heart-rhythm devices.

For the year, the company projected per-share earnings of $3.68 to $3.73, above recent estimates of analysts polled by Thomson Reuters for $3.62.

For the current quarter, the company forecast per-share earnings of 91 cents to 93 cents, also higher than analysts' views for 89 cents.

St. Jude has been on the defensive amid continued negative attention focused on its Durata heart lead. Last week, the U.S. Food and Drug Administration said an inspection of a plant that makes St. Jude's Durata defibrillator leads revealed manufacturing and quality problems, which the company has said it is working to resolve. The Durata leads have been in focus following recalls of the company's Riata leads in December 2011, though, so far, the Durata leads haven't been linked to the Riata problems.

St. Jude Medical reported a profit of $120 million, down from $125 million a year earlier. On a per-share basis, earnings were flat at 39 cents amid fewer shares outstanding in the latest period. Excluding restructuring-related charges and other items, adjusted earnings were up at 92 cents from 86 cents. St. Jude recently projected earnings of 90 cents to 92 cents.

Heart-rhythm devices, including ICDs and pacemakers, are St. Jude's biggest business. In the latest quarter, the company reported total cardiac-rhythm-management sales fell 6% to $682 million, including a 3% drop in ICD product sales and an 11% decline in pacemaker sales--in line with expectations.

Sales of atrial fibrillation products increased 10% to $239 million--also in line with estimates.

Shares closed Tuesday at $39.67 and were inactive premarket. The stock has bounced back by 31% from a 3 1/2-year low in November.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.